ASV Holdings, Inc. Files Form 10-Q with First Quarter 2017 Results

June 22, 2017 04:01 PM Eastern Time

GRAND RAPIDS, Minn.--(EON: Enhanced Online News)--ASV Holdings, Inc. (the “Company”) (NASDAQ: ASV) announced that
it has filed its Form 10-Q for the first quarter of 2017 today, June 22,
2017. There has been no material change to the quarterly numbers
previously reported in connection with the Company’s prospectus dated
May 12, 2017.

Financial Highlights:

Net Sales of $28.0 million compared to $28.5 million in Net Sales for
the three months ended March 31, 2016.

Revenues from sales of machines were $18.7 million compared to $16.8
million during the three months ended March 31, 2016.

Operating income of $1.1 million compared to $1.0 million in the three
months ended March 31, 2016.

GAAP net income was $0.2 million, or $0.03 in earnings per share
compared to net loss of $(0.3) million, or $(0.03) in earnings per
share in the three months ended March 31, 2016*.

Adjusted EBITDA** of $2.4 million, or 8.5% of net sales compared to
adjusted EBITDA of $2.3 million or 7.9% of net sales during the three
months ended March 31, 2016.

*Per share information for March 2016 is Pro Forma to reflect
transactions completed in connection with IPO

**Adjusted EBITDA reconciliation is provided below

Corporate Milestones:

In connection with the Company’s IPO, its common stock began trading
on The NASDAQ Capital Market on May 12, 2017 under the symbol “ASV.”

93% growth in revenues from sales of machines through the Company's
North American dealer distribution channels during the three months
ended March 31, 2017 compared to the three months ended March 31, 2016.

Significant shift in dealership distribution strategy resulted in
equipment sales of just 5.2% through Terex distribution channels as
compared to 48.1% in prior year’s period.

Andrew Rooke, Chief Executive Officer of ASV commented, “Our results for
the first quarter 2017 were as anticipated, and reflect the strategic
direction we’ve taken to reinvigorate the ASV brand and expand our
dealer network. We added 23 dealers in North America during the quarter,
which brings our dealer count to 156 locations throughout North America,
and we expect to continue to increase our ASV distribution throughout
the year. We believe that our innovative and highly engineered product
lines will continue to meet enthusiastic and healthy demand as the
construction equipment market continues to grow."

ASV Holdings, Inc. is a designer and manufacturer of compact
construction equipment. Its patented Posi-Track rubber tracked,
multi-level suspension undercarriage system provides a competitive
market differentiator for its Compact Track Loader (CTL) product line
with brand attributes of power, performance and serviceability. Its
wheeled Skid Steer Loaders (SSLs) also share the common brand
attributes. Equipment is sold through an independent dealer network
throughout North America consisting of 156 locations, as well as
additional dealers in Australia, and New Zealand. The company also sells
OEM equipment and aftermarket parts. ASV owns and operates a 238,000
square-foot production facility in Grand Rapids, MN.

Forward-Looking Statements and Non-GAAP
Financial Measures:

This press release contains forward-looking statements. Any
forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially, including the risks
detailed under “Risk Factors” in the Company’s Registration Statement on
Form S-1 filed in connection with its IPO, its Form 10-Q for the three
months ended March 31, 2017 and in other filings we make from time to
time with the Securities and Exchange Commission, and represent our
views only as of the date they are made and should not be relied upon as
representing our views as of any subsequent date. We do not assume any
obligation to update any forward-looking statements.

This press release includes the following non-GAAP financial measure:
“Adjusted EBITDA,” which is a non-GAAP term, is defined by the Company
and may not be comparable to similarly titled measures used by other
companies. A reconciliation of Net Income to Adjusted EBITDA is provided
below for the three month periods ended March 31, 2016 and 2017.

The Company’s management believes that Adjusted EBITDA and Adjusted
EBITDA as a percentage of sales represent key operating metrics for its
business. While Adjusted EBITDA is not intended to replace any
presentation included in our consolidated financial statements under
generally accepted accounting principles (GAAP) and should not be
considered an alternative to operating performance or an alternative to
cash flow as a measure of liquidity, we believe this measure is useful
to investors in assessing our operating results, capital expenditure and
working capital requirements and the ongoing performance of its
underlying businesses. These calculations may differ in method of
calculation from similarly titled measures used by other companies.

EBITDA is defined as income or loss before interest, income taxes,
depreciation and amortization. EBITDA is not a recognized measure
under U.S. GAAP and does not have a standardized meaning prescribed
by U.S. GAAP. Therefore, EBITDA may not be comparable to similar
measures presented by other companies. The table above reconciles
net income to EBITDA. See “—Cautionary Statements Regarding Non-GAAP
Measures” for further information regarding EBITDA.

(2)

Costs associated with the 2017 ConExpo trade show. The ConExpo show,
which is held every three years, was held in Las Vegas in March of
this year. This show is an international gathering place for the
construction industries. It is estimated that 130,000 professionals
from around the world attended the show.

(3)

Revision to accrual for legal proceeding expenses is included in
Adjusted EBITDA since it is an adjustment in the period to an
accrual established at the formation of the Joint Venture and is not
representative of the operating activity in the reported period.
This adjustment was due to the settlement of a legal claim lower
than the accrued cost.

(4)

Stock compensation and transaction related compensation costs.

(5)

Adjusted EBITDA is defined as EBITDA less the gain or loss related
to non-recurring events. Adjusted EBITDA is not a recognized measure
under U.S. GAAP and does not have a standardized meaning prescribed
by U.S. GAAP. Therefore, Adjusted EBITDA may not be comparable to
similar measures presented by other companies. The table above
reconciles EBITDA to Adjusted EBITDA. See “—Cautionary Statements
Regarding Non-GAAP Measures” for further information regarding
EBITDA.